Recently, a trial took place in Brooklyn against Dwayne Golden, who was convicted for organizing fraudulent cryptocurrency schemes affecting many investors.
Trial and Sentencing
Dwayne Golden, 57, was sentenced to 97 months in prison for cryptocurrency fraud through the companies EmpowerCoin, ECoinPlus, and Jet-Coin. The court found him guilty of wire fraud and money laundering, with prosecutors stating that he and his partners defrauded investors of over $40 million between April and August 2017.
Rising Scale of Cryptocurrency Fraud
According to the FBI, losses from cryptocurrency fraud in the U.S. reached $1.5 billion in 2025, with cryptocurrency becoming a primary payment method for scammers. In 2023, losses from cryptocurrency-related fraud increased by 45%, totaling over $5.6 billion, where investment scams represented 71% of all related sectors.
Prevention Measures and Industry Response
Financial institutions are implementing new technologies to combat evolving fraud threats. Research indicates that AI-driven fraud detection models can analyze large amounts of data. There is also increased collaboration and sharing of information among institutions to preemptively identify new threats. Global regulators are strengthening consumer protection, implementing stricter licensing schemes and real-name identification for cryptocurrency exchanges.
Despite technological advancements and regulatory changes, education remains a vital tool against cryptocurrency fraud. Experts recommend that investors thoroughly verify all investment opportunities and avoid promises of guaranteed returns.
